A Hong Kong-based satellite service provider, which is set for a $300 million listing on the Australian Securities Exchange, has bought local rival ­SatComms Australia and hired
iiNet
founder
Michael Malone
to be its ­newest board member.

SpeedCast is owned by private equity firm TA Associates, which bought its stake in the company less than two years ago. The latest acquisition is believed to be worth less than ­$10 million. Former TransACT chairman and chief executive
John Mackay
has also been appointed chairman of the ­SpeedCast board.

As first revealed by Street Talk, SpeedCast is in talks to float on the ASX. TA Associates would offload as little as 30 per cent of the company in a move that would value it at between $250 million and $300 million, with UBS the advisers.

It is understood the company is ­hoping to raise about $100 million and that the most likely listing date is July.

This would be done through both a partial placement by TA and a capital raising for new investors.

‘It’s an exciting board’

The move to hire Mr Malone as an independent non-executive director would assist with any move to list on the ASX. This is the iiNet founder’s first gig since leaving the company in March.

“Mr Malone led the IPO of iiNet in 1999 through to that company’s position today as a leader in its industry with a market capitalisation of over $1 billion," SpeedCast said in a statement.

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Mr Malone said he could not ­comment on any possible IPO but said the leadership team at SpeedCast drew him out of plans to take a break from the business world.

“It’s an exciting board with growth opportunity," he said.

“What I loved about iiNet was those growth years, and the M&A and roll-up is really quite exciting. SpeedCast feels like iiNet a few years ago."

SpeedCast chief executive
Pierre-Jean Beylier
said his company was ­considering the listing but had not come to a final decision.

“I don’t see too many other [acquisition] options," he said. “Listing is not about growth, but assisting shareholders to be able to exit some of their investments and potentially raise ­capital for future acquisitions. We want to ­continue organic growth in the Asia-Pacific region, Western Australia and the Northern Territory."

He added that SpeedCast was planning to expand SatComms’ WA teleport facility, which is used to receive satellite signals. The addition of two antennas would cost up to $400,000.